HomeMy WebLinkAbout2012-01-23 - Citizens Advisory Committee Meeting Agenda Packetr a Linda
Water District
AGENDA
YORBA LINDA WATER DISTRICT
CITIZENS ADVISORY COMMITTEE MEETING
Monday, January 23, 2012, 8:30 AM
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
2. PUBLIC COMMENTS
Any individual wishing to address the committee is requested to identify themselves and state the matter on
which they wish to comment. If the matter is on this agenda, the committee Chair will recognize the individual for
their comment when the item is considered. No action will be taken on matters not listed on this agenda.
Comments are limited to matters of public interest and matters within the jurisdiction of the Water District.
Comments are limited to five minutes.
3. PRESENTATIONS
3.1. Water Rate Study and Financial Planning Workshop
4. DISCUSSION ITEMS
This portion of the agenda is for matters such as technical presentations, drafts of proposed policies, or similar
items for which staff is seeking the advice and counsel of the Committee members. This portion of the agenda
may also include items for information only.
4.1. Colorado River Inspection Trip (Verbal Report by Gus Bruner)
4.2. New District Signs (Verbal Report)
4.3. Future Agenda Items
Intro to Metropolitan Water District
Golden State Water District
District Emergency Preparedness
District Public Affairs Efforts
5. ADJOURNMENT
- Q &A With Director Brett Barbre
Efforts
5.1. The next meeting of the Citizens Advisory Committee will be held February 27, 2012 at
8:30 a.m.
Items Distributed to the Committee Less Than 72 Hours Prior to the Meeting
Pursuant to Government Code section 54957.5, non - exempt public records that relate to open session agenda items
and are distributed to a majority of the Committee less than seventy -two (72) hours prior to the meeting will be available
for public inspection in the lobby of the District's business office located at 1717 E. Miraloma Avenue, Placentia, CA
92870, during regular business hours. When practical, these public records will also be made available on the District's
internet website accessible at http: / /www.ylwd.com /.
Accommodations for the Disabled
Any person may make a request for a disability - related modification or accommodation needed for that person to be
able to participate in the public meeting by telephoning the Executive Secretary at 714 - 701 -3020, or writing to Yorba
Linda Water District, P.O. Box 309, Yorba Linda, CA 92885 -0309. Requests must specify the nature of the disability and
the type of accommodation requested. A telephone number or other contact information should be included so the
District staff may discuss appropriate arrangements. Persons requesting a disability - related accommodation should
make the request with adequate time before the meeting for the District to provide the requested accommodation.
AGENDA REPORT
Meeting Date: January 23, 2012
To: Citizens Advisory Committee
Presented By: Stephen Parker, Finance Dept:
Manager
Prepared By: Stephen Parker, Finance
Manager
Subject: Water Rate Study and Financial Planning Workshop
DISCUSSION:
ITEM NO. 3.1
Finance
On January 16, 2012, the Board of Directors had a Water Rate Study and Financial Planning
Workshop. Two presentations were made - the Cost of Service, Financial Model & Rate Alternatives
by Sanjay Gaur, Manager at Raftelis Financial Consultants, and a Revenue Needs and Options by
Stephen Parker, Finance Manager, and Cindy Botts, Management Analyst.
Staff is providing the CAC a recap of the presentations and discussion that took place, and also be
available for questions.
STRATEGIC PLAN:
FR 4 -A: Complete the Cost of Service and Water Rate Study
Raftelis Financial Consultants were hired by the Board in March, 2010 to conduct a Cost of Service
and Water Rate Study to analyze the water budget rate structure option (with a MWDOC grant
partially subsidizing the study). The workshop was the culmination of the work that Raftelis
conducted on behalf of the District.
Strategic Plan Initiative FR 4 -13: Evaluate Equitable Rate Structures that Promote Conservation and
Efficiency is also very directly related to these presentations.
ATTACHMENTS:
Description: Type
Raftelis Presentation
Raftelis Presentation Backup Material
YLWD Board Rate Workshop Final.pdf
Rate Study Financial Planning Workshop PPT.pdf Staff Presentation Backup Material
Yorba Linda
Water District
It
RATE DESIGN
BOARD WORKSHOP
Yorba Linda Water District
January 16, 2012
YL
W
Yorba Linda
Water District
RFC �
COi 4SULTANE;, INC,
RFC
RAFTELIS FINANCIAL
CONSULTANTS, INC.
Yorba Linda
Water District
if
RFC
RAF FM FIWAS OAt
CQNSULTANT5, INC.
OVERVIEW
Water Financial Plan
Key Assumptions
Financial Plan Scenarios
Scenario 1— Approved CIP, No Annex
Scenario 2 — Modified CIP, No Annex
Savings from Annexation
Recommendations
Water Rate Structure Options
Results of Pricing Objective Exercise
Proposed Rate Structure
• Customer Impacts
• Discussion
• Sewer Overview
Jan 16, 2012
YLWD - Rate Design Board Workshop
�:
FINANCIAL PLAN
Jan 16, 2012 YLWD - Rate Design Board Workshop
Yorba Linda
Water District
11
RFC
E o-CMS ITANTs, INC-
FINANCIAL PLAN
KEYAssumpTioNs
Inflations
General costs: 3.0%
Personnel costs: 3.5
Construction costs: 3.0%
Other revenues: 2.0%
Interest earnings: 0.8% (FY 2012 & FY 2013)
and 2.0% (after)
Pass -thru power and imported water costs
Rates effective July 1st
Jan 16, 2012
YLWD - Rate Design Board Workshop
El
Yorba Linda
Water District
11
RFC
RAFFFtt FIWAKOAt
cONSS LTAwTS, ANC_
FINANCIAL PLAN
KEYAssumpvoNs
Water sales &projected growth
Growth: 0.4% (estimated by the District)
FY 2012: 191#000 AF
Water supply
OCWD
MWDOC
Jan 16, 2012
48% 65%
52%
35%
YLWD - Rate Design Board Workshop
5
Yorba Linda
Water District
it
75
APPROVED CIP
Highland BPS Upgrade $3.64
Ohio St /Oriente Dr Pipeline Repl
2010 Waterline Project
Well No. 20
YL Blvd Booster Station
Elk Mountain Site Imp
Non -Pot Water Study for Irrig Use
S & W Well Project
Computerized Maint & Mgmt. Syst.
Fairmont Res., BPS & Site Imp
2012 Pipeline Project
Lakeview Grade
Lakeview Fencing
Press. Reg. Stations Upgrade
Disinf. Bstr. Sta. at Hidden Hills Res
GIS - Phase II
$1.26
$1.77
$1.35
$0.50
$0.87
$0.04
$4.25 $0.60
$1.00 $1.50 $2.00 $3.48
$0.07
$0.45 $2.00 $3.50
$1.34 $1.22
$0.16 $0.50
$0.50
$0.05
$0.50
$0.20
$0.08 $0.06
Annual Routine Capital R &R*
Total CIP $11.67
RAFrE� ffWANCft
C01+15UTAiSM W_ Jan 16, 2012
$1.79 $1.17
$10.39 $7.32 $5.27 $1.17
YLWD - Rate Design Board Workshop
$2.87
$2.87
Yorba Linda
Water District
it
MODIFIED CIP
Highland BPS Upgrade $3.64
Ohio St /Oriente Dr Pipeline Repl $1.26
2010 Waterline Project $1.77
Well No. 20 $1.35 _
YL Blvd Booster Station $0.50 $3.25 $1.60
Elk Mountain Site Imp $0.17
Non -Pot Water Study for Irrig Use $0.04
Well No. 21 $0.25 $1.25 $1.50
Computerized Maint & Mgmt. Syst. $0.07
Fairmont Res., BPS & Site Imp $0.45
2012 Pipeline Project
$2.00 $3.50
$1.34 $1.22
Lakeview Grade $0.16 $0.50
Lakeview Fencing $0.05
Press. Reg. Stations Upgrade $0.50 $0.50
Disinf. Bstr. Sta. at Hidden Hills Res $0.20
Meter Replacement Program $0.58 $0.58 $0.58 $0.58 $0.58
GIS - Phase II $0.06 $0.04
Well No. 22
Annual Routine Capital R &R*
$0.75 $1.25 $1.00
$1.79 $1.17 $2.87
Total CIP $10.14 $9.72 $9.18 $3.61 $2.74 $3.45
N TN Q T ` Jan 16, 2012 YLWD - Rate Design Board Workshop
�...., STATUS Quo FINANCIAL PLAN
i�u.�
APPROVED CIP
Chart 1- Revenue Adjustments & Coverage Chart
10 0.0 °6
200%
80.0%
150%
10495
60.0%
40.0%
20.096
5096
0 -0% 0 -0%
0 -0% 0 -096
0.0%
0_0%
0'6
Rev Adj 2012
2013 2014
2015 2016
2017 Coverage
�RevAdj
t Coverage Ratio —
Required Coverage •
Alert Coverage
I
Minions
Chart 3 - Total Reserve Chart
$20
X10
56
-10
-$14
-$20
2012 2013 2014 2015 2016 2017
� Ending Dalanres tTarget • AlertBalantes
RFC
RAFTFM FIWAS OAt
CQNSULTANT5, INC.
Financial Plan Criteria
X30
o S20
X10
�0
-� 10
Chart 2 - Operating Financial Plan
DYLWDO &M �WaterCost ODebtService Non- Operating
Res Funding Current Rev Proposed Rev
Chart 4 - CIP and Funding Sources
$15
U1 Seiec�tCIP No -Annex CIP
$5
2012 2013 2014 2015 2016 2017
MDebtFunding - PayG -o
•Debt Coverage (Green line on Chart 1) >_ Required Coverage 110% (Red line on Chart 1)
•Reserve Ending Balances (Red bar on Chart 3) >_ Target Balances (Green line on Chart 3)
Jan 16, 2012
YLWD - Rate Design Board Workshop
El
WaterDSst�r �t STATUS QUO FINANCIAL PLAN
11
APPROVED CIP
Chart 1- Revenue Adjustments &Coverage Chat � Chart 1 — Revenue Adjustments &
100.0% -
Chart 2 — Operating Financial Plan
•Stacked bars — Projected Expenses (Water
F Cost, YLWD 0 &M, Debt Service, Reserve
Funding & Non - Operating)
Chart 4 — CIP & Funding Sources
•Green bars — CIP to be funded by Paygo
•Purple bars — CIP to be financed by new debt
RFC
RAFFFtt FIWAKOAt
cONSS LTAwrs, ANC_
Financial Plan Criteria
-il Coverage Chart
,i
r
•Blue bar — Proposed Revenue Adjustments
•Red line — Required Coverage Ratio 110%
•Green line — Projected Coverage Ratio
Chart 3 — Reserve Chart
•Red bar — Projected Reserve Ending Balances
•Green line —Target Reserve Balances
•Debt Coverage (Green line on Chart 1) >_ Required Coverage 110% (Red line on Chart 1)
•Reserve Ending Balances (Red bar on Chart 3) >_ Target Balances (Green line on Chart 3)
Jan 16, 2012
YLWD - Rate Design Board Workshop
Yorba Linda
Water District
if
FINANCIAL PLAN
SCENARIO 1 - APPROVED CIP, NO ANNEX
Chart 1- Revenue Adjustments & Overage Chart
15.0% 400%
10.096 1 300%
200%
5.096
l00%
0.0%
0.0% 0%
Rev Adj 2012 2013 2014 2015 2016 2017 Coverage
�RevAdj Coverage Ratio Required Coverage + Alert Coverage
Millions
$20
$15
$10
$5
i $0
!Chart 3 - Total Reserve Chart
2012 2013 2014 2015 2016 2017
� Ending Balanres +Target • AIertBalances
RFC
RAFTFM FIWAS OAt
CQNSULTANT5, INC.
Jan 16, 2012
os $40
$30
$20
$10
$0
2012
DYLWDO &M
Res Funding
Chart 2 - Operating Financial Plan
2013 2014 2015 2016 2017
�WaterCost ODebtService =Non- Qperatirkg
Current Rev Proposed Rev
Chart 4 - CIP and Funding Sources
$15
SelectCIP No -Annex CIP
$'10
$5
$0
2012 2013 2014 2015 2016 2017
■Debt Funding PayGo
YLWD - Rate Design Board Workshop
10
Yorba Linda
Water District
11
FINANCIAL PLAN
SCENARIO 2 - MODIFIED CIP, NO ANNEX
Chart 1- Revenue Adjustments & Coverage Chart
10.0%
-0% 9 -096
T 400%
8 v0%
30096
6.0%
200%
4.0%
2 2 2
2.0%
-096 -0% -0%
10056
0.0'3
0.0%
096
2012 2-113 2014
2015 2016 2017
Rev Adj
Coverage
llllllllllllllllllllllllllllR.evAdj + Coverage Ratio
°Required Coverage * Alert Coverage
Millions Chart 3 - Total Reserve Chart
$20
$15
$10
$5
$0 -
2-012 2013
� Ending Balances
RFC
RAFTFM FIWAS OAt
coNsuLTANrs, INC-
$7
2014 2015 2016 2017
— Target . Alert Balances
Jan 16, 2012
vi $40
c
0
$30
$20
$10
$0
Chart 2 - Operating Financial Plan
2012 2013 2014
DYLWDO &M YVaterCmt
R es F undi n; Current Rev
S15
= S10
$3
so
2015
0 Debt Service
Proposed Rev
2016 2117
Non- Operating
Chart 4 - CIP and Funding Sources
SeiectCIP If No -Annex CIP
2012 2013 2014
0 Debt Funding
2015 2016
PaYGo
YLWD - Rate Design Board Workshop
2017
11
Yorba Linda
Water District
if
FINANCIAL PLAN
SCENARIO 3 — MODIFIED CIP, ANNEX
Chart 1- Revenue Adjustments & Coverage Chart
millions Chart 3 - Total Reserve Chart
$20
$15
$lo
$5
$0
2012 2013
Ending Balances
RFC
RAFTFM FIWAS OAt
CQNSULTANTS, INC.
40096
30096
200%
0'•g
:Dverage
=rage
2014 2015 2016 2017
0 Target 4 Alert Balances
v $40
c
0
$30
$20
$10
$0
Chart 2 - Operating Financial Plan
2012 2013 2014 2015
DYLWDO &M � Water Cost ODebt Servire
Res Funding Current Rev Proposed Rev
2015 2017
Non- operating
Chart 4 - CIP and Funding Sources
515
Select•CIP Annex CIP
c`r
$io L.i
$5
50
2012 2013 2014 2015 =016 '_01 d
■Debt Funding Pa. ;o
Estimated Cost Savings from Annexation: -$4.2M from FY 2014 - FY 2017 in
Water Supply Costs
Jan 16, 2012
YLWD - Rate Design Board Workshop
`m
Yorba Linda
Water District
if
,i.
RFC
RAF FM FIWAS OAt
CQNSULTANT5, INC.
RECOMMENDED FINANCIAL PLAN
Proceed with Scenario 2
Continue to lobby for Annexation
Jan 16, 2012
YLWD - Rate Design Board Workshop
13
RATE DESIGN
Jan 16, 2012 YLWD - Rate Design Board Workshop 14
Yorba Linda
Water District
11
RFC
RAFFFtt FIWAKOAt
cONSSULTAwTs, INC.
RATE STRUCTURE RANKING
Jan 16, 2012
Water Budget meets these
requirements
YLWD - Rate Design Board Workshop
15
Yorba Linda
Water District
if
RFC
RAF FM FIWAS OAt
CQNSULTANT5, INC.
RATE STRUCTURE OPTIONS
Option 1— Status Quo
Increase on the current rates
Option 2 — Modified Uniform
Uniform service charges & modified uniform commodity
rates
Enhance revenue stability while maintaining affordability
Option 3 — Modified Uniform & AWWA
Service Charges
AWWA ratio service charges & modified uniform
commodity rates
Enhance revenue stability while maintaining affordability
Address equity concerns on different meter capacity
Jan 16, 2012
YLWD - Rate Design Board Workshop
16
Yorba Linda
Water District
11
RFC
eC)NSVITANTS, INC-
ENHANCED REVENUE STABILITY
Current Rate Structure
(Option 1- Status Quo)
14% from Fixed Service Charges
86% from Commodity Rates
Proposed Rate Structure
(Option 2 or 3 - Modified Uniform or AWWA)
20% from Fixed Service Charges
80% from Commodity Rates
Jan 16, 2012
YLWD - Rate Design Board Workshop
17
Yorba Linda
Water District
it
5/8
3/4
1
11/2
2
3
4
6
8
10
Tier 1
0 -10 ccf / dwelling unit
Tier 2
Above Tier 1
Uniform
Applied to CII Rates
RFC
RAF FM FINAS OAt
CQNSULTANT5, INC.
PROPOSED RATES: SCENARIO 2
$11.73
$12.79
$13.95
$18.95
$20.66
$10.94
$11.93
$11.73
$12.79
$13.95
$18.95
$20.66
$10.94
$11.93
$11.73
$12.79
$12.79
$13.95
$13.95
$18.95
$20.66
$18.23
$19.88
$11.73
$18.95 $20.66
$36.45
$39.74
$11.73
$12.79
$13.95
$18.95
$20.66
$5831
$127.55
$63.56
$139.03
$11.73
$12.79 $13.95
$18.95 $20.66
$11.73
$11.73
$12.79
$12.79
$12.79
$12.79
$13.95
$13.95
$13.95
$13.95
$18.95
$18.95
$18.95
$18.95
$20.66
$20.66
$20.66
$20.66
$229.58
$510.17
$250.25
$556.09
$11.73
$11.73
$874.57
$1,384.73
$953.29
$1,509.36
IIK�� WA ►JIIL��WAFJIIK�� WA ►JIILWMMM�WAVAIIcaw '40WAVAIIL
$2.52
$2.75
$3.00
$2.22
$2.42
$2.22
$2.42
$2.52
$2.75
$3.00
$2.69
$2.94
$2.69
$2.94
$2.52
$2.75
$3.00
$2.55
$2.78
$2.55
$2.78
Jan 16, 2012
YLWD - Rate Design Board Workshop
Yorba Linda
Water District
11
RFC
RAF FEE FIWAS OA
CClNSULTANT5, INC-
CUSTOMER IMPACTS
OPTION 1 - STATUS QUO
%Bilks Customer Impacts
Selected Rate Option - StatusCLuo
45%
40%
40%
35%
30% —
25%
20%
15%
10%
5% -
0% 0%
0%
25%
15%
16%
w
$1 -$3 $3 -$5 $5 -$10 $10 -$20 $20 -$40 >$40
$ Change in Monthly Bills
SFR 1 -in meter Monthly Bill Comparisons at Various Usage Levels
Selected Rate Option- Status Quo
$6DD
$5DD
$4DD
$3DD
$2DD
$1DD
$D
Month) BilledU e
5 ccf
10 ccf
15 ccf
25 ccf
50 ccf
100 ccf
200 ccf
■ Current Bills
$24.33
$36.93
$49.53
$74.73
$137.73
$263.73
$515.73
Proposed Inclining Bills
$26.54
$40.29
$54.04
$81.54
$150.29
$287.79
$562.79
Impact
$2
$.3
$5
$7
$13
$24
$47
% impact
994
9%
9% I
9%
9%
9%
9%
Jan 16, 2012 YLWD - Rate Design Board Workshop
19
Yorba Linda
Water District
if
RFC
RAF FM FIWAS OAt
1:0NSULTANT5, INC.
CUSTOMER IMPACTS
OPTION 2 - MODIFIED UNIFORM
Bills Customer Impacts
Selected Rate Option- Modified uniform
80%
70%
60%
50%
40%
30%
20%
10%
0%
{$0 $0 -$1 $1 -$3 $3 -$5 $5 -$10 $I0 -$20 $20 -$44 >$41D
$ Change in Monthly Bills
5FR 1 -in meter Monthly Bill Comparisons at Various Usage Levels
Selected Rate Option- Modified Un"rforrn
$6DD
596
$5DD
i896
$4DD
12%
0%
j
0%
0%
0
— .
E .
2%
–=EEEEV----
1%
{$0 $0 -$1 $1 -$3 $3 -$5 $5 -$10 $I0 -$20 $20 -$44 >$41D
$ Change in Monthly Bills
5FR 1 -in meter Monthly Bill Comparisons at Various Usage Levels
Selected Rate Option- Modified Un"rforrn
$6DD
$5DD
$4DD
$3DD
$2DD
$1DD
50
Month lv Bil led u e
5 ccf
10 ccf
15 ccf
25 ccf
50 ccf
100 ccf
200 ccf
• Current Bills
$24.33
$36.93
$49.53
$74.73
$137.73
$263.73
$515.73
• PropGsed Inclining Bills
$30.05
$41.15
$54.60
$81.5+0
$148.75
$283.25
$552.25
Impact
$6
$4
$5
$7
$11
$20
$37
% Impact
24%
11%
10%
9%
8%
7%
7%
Jan 16, 2012
YLWD - Rate Design Board Workshop 20
mn-
Yorba
Linda District
Water CUSTOMER IMPACTS
if
OPTION 3 - MODIFIED UNIFORM & AWWA SERVICE CHARGES
Customers with Customer Impacts
Selected Rate Optbn -AWWA
5/8 & 3/4 in. a0%
meter with low
consumption
21%
RFC
RAF FM FIWAS OAt
CQNSULTANT5, INC-
1"' -
10%
5% - 196
n%
$ 600
$500
$400
$300
$20
W)o
9%
$1 -$3 $3 -$5 $5 -$10 $10-$20 $zn -San >$40
$ Change in Monthly Bills
SFR 1 -in meter Monthly Bill Comparisons at Various Usage Levels
Selected Rate 0pUon -AWWA
L �1
Month) 13illedu sage
5 ccf
10 ccf
15 ccf
25 ccf
50 ccf
100 ccf
200 ccf
• Current Bills
$24.33
$36.93
$49.53
$74.73
$137.73
$263.73
$515.73
• Proposed Inclining Bills
$29.33
$40.43
$53.88
$80.78
$148.03
$282.53
$551.53
Impact
$5
$3
$4
$6
$10
$19
$36
% Impact
21%
9%
9%
8%
7%
7%
7%
Jan 16, 2012
YLWD - Rate Design Board Workshop
21
DISCUSSION
Jan 16, 2012 YLWD - Rate Design Board Workshop 22
SEWER OVERVIEW
Jan 16, 2012 YLWD - Rate Design Board Workshop 23
Yorba Linda
Water District
if
100.00%
84 -0095
60-00%
40.00%
20 -00%
0 -00%
SEWER OVERVIEW
ASSUMES CITY TRANSFERS OF MF & CII TO DISTRICT RATES IN FY 2016
Revenue Adjustments and Debt Coverage
FY 2012 FY 2013 FY 2414 FY 2015 FY 2016
Revenue Adjustments -DebtCoverage Ratio
-Required Debt Coverage • Debt Coverage Warning
140%
120%
100%
80%
60%
40%
20%
0%
$2 -0
Q $1.5
$1 -0
$0 -5
$0.0
Operating Financial Plan
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
O &M Expenses Debt Service
Other Expenses Reserves Funding
_Total Revenue at current rates Total Revenue at proposed rates
WW Operating Reserve WW Capital Reserve
11111111111111111111WW Operating Reserve Ending Balance
_WW Operating Reserve Minimum
W W Operating Reserve Maximum
+ WW Operating Reserve Target Warning
RFC
RAFTEEK FIWAKOAt
1:0NISULTANT5, INC-
Jan 16, 2012
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
�WW Capital Reserve Ending Balance
_WW Capital Reserve Minimum
+ WW Capital Reserve Target Warning
$ 700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$1.5
c
.Q
'2 $1.0
$0 -5
$OA
CIP Funding Sources
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
■Bonds /Debt Funded ■Rates Funded *Annual CIP
WW Emergency Reserve
FY 2012 FY 2013 FY 2014 FY 2015 FY 2015
1111111111111111111WW Emergency Reserve Ending Balance
_WW Emergency Reserve Minimum
-WW Emergency Reserve Maximum
• 1M1fVM11 Fmr,rvr, nry Rr, ca rva Tar val 4Alarninv
YLWD - Rate Design Board Workshop
M"
Yorba Linda
Water District
if
SEWER OVERVIEW
ASSUMES CITY TRANSFERS OF MF & CII TO DISTRICT RATES IN FY 2014
Revenue Adjustments and Debt Coverage
100.0096
..........._ ............................__... ..,........._...........,...... ........._
...,......._ ........ ........._............_.._.._..
140%
120%
BO -04%
............................................ ..... ........................ ..
100%
60 -00%
...................................................................................................................................................
...............................
BO%
40.00%
...................................................................................................................................................
...............................
50%
40%
20 -00°6
...................................................................................................................................................
...............................
20%
9 -00%
0%
FY 2012 FY 21713 FY 2014
FY 2015 FY 2016
Revenue Adjustments -Debt
Coverage Ratio
I
Required Debt Coverage •
Debt Coverage Warning
$025
$0.20
Q $0.15
$0.10
` $0 -05
I $0 -00
WW Operating Reserve
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
111111111111111WW Operating Reserve Ending Balance
_WW Operating Reserve Minimum
WW Operating Reserve Maximum
WW Operating Reserve Target Warning
RFC
RAFTEEK FIWAKOAt
C0NSULTANT5, INC-
$2 -0
4 $15
$1 -0
$0 -5
$0.0
Operating Financial Plan
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
I� O &M Expenses Debt Service
i Other Expenses Reserves Funding
Total Revenue at currentrates -Total Revenue at proposed rates
$0 -6
$11.5
,2 $0 -4
$0 -3
$0.2
$0 -1
$0 -0
WW Capital Reserve
Jan 16, 2012
FY 2912 FY 2013 FY 2014 FY 2015 FY 2015
W W Capital Reserve Ending Balance
_WW Capital Reserve Minimum
• WW Capital ReserveTareet WarninE
$700 000 CFdS f f f5
$600,090
$ 500,000
$400,900
$300,900
$ 200,000
$10x,000
$15
e
.2
f $lA
$0.5
$0.0
CIR Funding Sources
FY 2012 FY 2013 FY 2014 FY 3015 FY 2016
■ Bonds/De btFunded ■Rates Funded 0 Annual CIP
WW Emergency Reserve
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
111111111111111WW Emergency Reserve Ending Balance
_WW Emergency Reserve Minimum
_WW Emergency Reserve Maximum
+ WW Emergency Reserve Target Warning
YLWD - Rate Design Board Workshop
25
Yorba Linda
Water District
It
RFC S
�oM5UTAN ajl,C
DISCUSSION
Jan 16, 2012
YLWD - Rate Design Board Workshop
26
Yorba Linda
Water District
11
RFC
eC)NSUITANTS, INC-
RESERVE TARGETS FOR FY 2012
Operating Reserve — 8% of O &M
Emergency Reserve — $1.00 million
Capital Replacement Reserve — $1.82
million
COP Reserves — $2.15 million
Employee Benefit Liability (EBL) Reserves
— $0.18 million
Jan 16, 2012
YLWD - Rate Design Board Workshop
27
Yorba Linda
Water District
11
PRICING OBJECTIVE RESULTS
Customer Understanding
Revenue Stability
Minimization of Customer Impacts
Easy p to Implement
Affordability for Essential use
Funding Mechanism for Alternative Water Supply &
Conservation Programs _
Easy to Administer _
Promotin g Conservation _
Equitable in Allocating Capital Cost _
q g p
Targeting Outdoor Water Use
g g
Drought Management Tool
Promoting Efficiency
ULN TN oNsT Jan 16, 2012
0 1 L 3
0 1 1 3
0 1 3 1
0 2 2 1
1 1 2 1
1 1 2 1
1 1 3 0
3 0 0 2
2 1 2 0
2 1 2 0
1 3 1 0
YLWD - Rate Design Board Workshop
aYorba Linda
Water District
Rate Study &Financial Planning Workshop
Presented by: Stephen Parker & Cindy Botts
January 16, 2012
s
$2.52
per unit
(748 gallons)
Supplie.
Salary- related expenses
21%
I., "I
Variable water costs
57%
($1.44)
s
$3.00
$2.50
$2.00
$1.50
$1.00
$0.50
Jan 03 Jan 04 Jan 05 Jul 05 Jan 06 Jan 07 Aug 08 Jan 09 Sep 09 Aug 10 Jan 11 Jan 12
YLWD Commodity Charge MWD $ /Acre -foot
$ 900.00
$800.00
$ 700.00
$ 600.00
$ 500.00
$400.00
$ 300.00
$ 200.00
$100.00
$1,200
$1,000
$800
$600
$400
$200
$892
80%
$1,002
75%
70%
65%
$328 60%
55%
FY 11 -12 FY 12 -13 FY 13 -14 FY 14 -15 FY 15 -16
MWD Projected Future Water Rates OCWD Projected Future Water Rates OCWD Projected Future BPP
Note: Expected pass- through increases of 2% -3% over the next 3 years
50%
Golden State WC
37.80
83.27
121.07
Laguna Beach CWD
30.05
89.00
119.05
Mesa Water
21.25
67.50
88.75
Moulton Niguel WD
10.36
36.90
47.26
South Coast WD
49.16
79.04
128.20
YLWD
11.73
63.00
74.73
Note: YLWD is the only OC agency with a static fixed charge across all meter sizes
Decision Financial * Does not include Variable Water
Cost Pass - throughs
40
* Dc
-- — y
I
j
i�3K ' � Tf -. i- j.•1
i"W
YLW D Rate
Structure
Rate Structure Decision Tree
No Change-
"Postage Stamp"
"Modified"
Uniform Rate
AWWA "Modified
Uniform Rate
Rate Increase %, based
on Financial Decision
Tree
Simple 2- tiered rate
1 -10 units & 11+ units
FY 12/13: $2.22 & $2.69
FY 13/14: $2.42 & $2.94
Simple 2- tiered rate & change
fixed charge to volumetric
1 -10 units & 11+ units
FY 12/13: $2.22 & $2.69
FY 13/14: $2.42 & $2.94
i�3K ' � Tf -. i- j.•1
i"W
Discussion- Rate Structure Decision Tree
YLW D Rate
Structure
No Change-
"Postage Stamp"
"Modified"
Uniform Rate
AWWA "Modified
Uniform Rate
Rate Increase %, based
on Financial Decision
Tree
Simple 2- tiered rate
1 -10 units & 11+ units
FY 12/13: $2.22 & $2.69
FY 13/14: $2.42 & $2.94
Simple 2- tiered rate & change
fixed charge to volumetric
1 -10 units & 11+ units
FY 12/13: $2.22 & $2.69
FY 13/14: $2.42 & $2.94
Housekeeping Items
Ilk-
J
• Resolution 08 -01: All variable water cost
refunds received credited to current customer
accounts
• Staff's proposed method: Refunds used to
fund system improvements, benefitting the
same customer base
s
Resolution 08 -02: 21% of fixed supplies,
services and personnel costs
• Did not use this method for Sept 2009 &
August 2010 rate increase ($10.20 to $11.73)—
Finance unaware of resolution
• Raftelis' proposed method: 20% of total
revenue collected on the fixed charge
Questions?
Ilk-